This is a triangle scheme. Statstically speaking, there are always going to be losers in a triangle scheme.

My advice: Don't do it.

EDIT: If you do partcipate though, go to freeipods.com through the link I just posted, and not the above one, because otherwise he'll get referral points if you partcipate. (While this might seem mean, I like to deprive people of referrals).